(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. Amounts appropriated for the purposes of this act from the receipts of this tax in the operating budget must be deposited into the local public health financing account created in section 3 of this act.

   (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 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."

   Renumber remaining sections consecutively and correct internal references accordingly. Correct the title.

   On page 2, line 21, after "(a)" strike all material through "amount" and insert ""Base year funding" means the 2007 budgeted amount of local funding"

   On page 3, line 15, after "budget" insert "from the receipts of the tax in RCW 82.24.020(1)"

   On page 3, line 19, after "section" insert ", except for such moneys appropriated to the department of health for the purpose of conducting its responsibilities under sections 3, 4, and 6 of this act"

   On page 3, line 20, after "(3)" strike "Beginning January 1, 2008, and on the first business day" and insert "During the month of January 2008, and during the month"

   On page 3, line 26, after "(4)" strike "Beginning January 1, 2008, and on the first business day" and insert "During the month of January 2008, and during the first month"

   On page 4, line 11, after "exceeded" strike all material through "base year" on line 13 and insert "base year funding"

   On page 4, line 18, after "year" insert "funding"

   On page 4, line 26, after "year" insert "funding"

   On page 5, line 29, after "adopt a" insert "prioritized"

   On page 6, line 4, after "by the" insert "prioritized"

   On page 6, after line 5, insert "(5) The department, in consultation with representatives of county governments, shall provide local jurisdictions with financial incentives to encourage and increase local investments in core public health functions. The local jurisdictions shall not supplant existing local funding with such state-incented resources."

   Correct the title.

EFFECT: Specifies that the appropriated funds for the Local Public Health Financing Account would come from cigarette tax receipts.

   Makes corrections to clarify that the maintenance of effort    amount of funding is the amount of local discretionary funds    adopted in the 2007 county budgets for the purposes of public    health.

   Allows the Treasurer to distribute money during the month of    January rather than only on the first business day in     January.

   Authorizes appropriations to the Department of Health for    carrying out its responsibilities as provided in the bill.

   Specifies that the Department of Health's list of core public    health functions shall be prioritized.

   Directs the Department of Health to develop financial     incentives to encourage and increase local government     spending on core public health functions.