BILL REQ. #: S-4970.4
|State of Washington||61st Legislature||2010 Regular Session|
Read first time 02/24/10. Referred to Committee on Ways & Means.
AN ACT Relating to providing funding for the basic health plan by increasing the taxes on certain tobacco products and facilitating the funding within the state expenditure limit; amending RCW 82.24.020, 82.24.026, and 43.135.035; adding a new section to chapter 70.47 RCW; repealing RCW 82.24.027 and 82.24.028; making an appropriation; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.24.020 and 2009 c 479 s 66 are each amended to read
(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
(( one and fifteen one-hundredths)) 12.125 cents per cigarette. All
revenues collected from the tax in this section must be deposited into
the state general fund.
An additional tax is imposed upon the sale, use, consumption,
handling, possession, or distribution of all cigarettes, in an amount
equal to five hundred twenty-five one-thousandths of a cent per
cigarette. All revenues collected during any month from this
additional tax shall be deposited in the state general fund by the
twenty-fifth day of the following month.)) Wholesalers subject to the payment of this tax may, if they
wish, absorb five one-hundredths cents 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.
(3) An additional tax is imposed upon the sale, use, consumption, handling, possession, or distribution of all cigarettes, in an amount equal to two and five one-hundredths cents per cigarette. All revenues collected during any month from this additional tax shall be deposited in the state general fund by the twenty-fifth day of the following month.
(5))) (3) For purposes of this chapter, "possession" (( shall))
means 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)) is deemed to occur at the location of the
cigarettes being so transported or held.
(6))) (4) In accordance with federal law and rules prescribed by
the department, an enrolled member of a federally recognized Indian
tribe may purchase cigarettes from an Indian tribal organization under
the jurisdiction of the member's tribe for the member's own use exempt
from the applicable taxes imposed by this chapter. Except as provided
in subsection (( (7))) (5) of this section, any person, who purchases
cigarettes from an Indian tribal organization and who is not an
enrolled member of the federally recognized Indian tribe within whose
jurisdiction the sale takes place, is not exempt from the applicable
taxes imposed by this chapter.
(7))) (5) If the state enters into a cigarette tax contract or
agreement with a federally recognized Indian tribe under chapter 43.06
RCW, the terms of the contract or agreement (( shall)) take precedence
over any conflicting provisions of this chapter while the contract or
agreement is in effect.
Sec. 2 RCW 82.24.026 and 2009 c 479 s 67 are each amended to read
(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 three cents per cigarette.
(2) The revenue collected under this section ((
shall)) must be
deposited as follows:
28.5)) 14 percent (( shall)) must be deposited into the
(b) The remainder ((
shall)) must be deposited into the education
legacy trust account.
NEW SECTION. Sec. 3 The following acts or parts of acts are each
(1) RCW 82.24.027 (Additional tax imposed -- Rate -- Deposited into the general fund) and 2009 c 479 s 68, 2008 c 86 s 303, 1999 c 309 s 925, & 1986 c 3 s 12; and
(2) RCW 82.24.028 (Additional tax imposed -- Rate -- Deposited into the general fund) and 2009 c 479 s 69, 2008 c 86 s 304, & 2002 c 2 s 3.
NEW SECTION. Sec. 4 A new section is added to chapter 70.47 RCW
to read as follows:
The basic health plan stabilization account is created in the state treasury. Funds from the account must be used to fund enrollment in the subsidized basic health plan under this chapter.
NEW SECTION. Sec. 5 The sum of eighty-five million six hundred
ninety-eight thousand dollars is appropriated from the general fund for
deposit into the basic health plan stabilization account for the fiscal
year ending June 30, 2011. The funds used from this appropriation must
be used to support enrollment for approximately thirty-six thousand six
hundred low-income individuals in the subsidized basic health plan for
fiscal year 2011.
Sec. 6 RCW 43.135.035 and 2010 c ... (ESSB 6130 as amended by the
House) s 2 are each amended to read as follows:
(1) After July 1, 2011, any action or combination of actions by the legislature that raises taxes may be taken only if approved by a two-thirds vote of each house of the legislature, and then only if state expenditures in any fiscal year, including the new revenue, will not exceed the state expenditure limits established under this chapter. Pursuant to the referendum power set forth in Article II, section 1(b) of the state Constitution, tax increases may be referred to the voters for their approval or rejection at an election.
(2)(a) If the legislative action under subsection (1) of this section will result in expenditures in excess of the state expenditure limit, then the action of the legislature ((
shall)) may not take effect
until approved by a vote of the people at a November general election.
The state expenditure limit committee (( shall)) must adjust the state
expenditure limit by the amount of additional revenue approved by the
voters under this section. This adjustment (( shall)) may not exceed
the amount of revenue generated by the legislative action during the
first full fiscal year in which it is in effect. The state expenditure
limit (( shall)) must be adjusted downward upon expiration or repeal of
the legislative action.
(b) The ballot title for any vote of the people required under this section shall be substantially as follows:
"Shall taxes be imposed on . . . . . . . in order to allow a spending increase above last year's authorized spending adjusted for personal income growth?"
(3)(a) The state expenditure limit may be exceeded upon declaration of an emergency for a period not to exceed twenty-four months by a law approved by a two-thirds vote of each house of the legislature and signed by the governor. The law ((
shall)) must set forth the nature of
the emergency, which is limited to natural disasters that require
immediate government action to alleviate human suffering and provide
humanitarian assistance. The state expenditure limit may be exceeded
for no more than twenty-four months following the declaration of the
emergency and only for the purposes contained in the emergency
(b) Additional taxes required for an emergency under this section may be imposed only until thirty days following the next general election, unless an extension is approved at that general election. The additional taxes ((
shall)) expire upon expiration of the
declaration of emergency. The legislature (( shall)) may not impose
additional taxes for emergency purposes under this subsection unless
funds in the education construction fund have been exhausted.
(c) The state or any political subdivision of the state ((
may not impose any tax on intangible property listed in RCW 84.36.070
as that statute exists on January 1, 1993.
(4) If the cost of any state program or function is shifted from the state general fund to another source of funding, or if moneys are transferred from the state general fund to another fund or account, the state expenditure limit committee, acting pursuant to RCW 43.135.025(5), ((
shall)) must lower the state expenditure limit to
reflect the shift. For the purposes of this section, a transfer of
money from the state general fund to another fund or account includes
any state legislative action taken that has the effect of reducing
revenues from a particular source, where such revenues would otherwise
be deposited into the state general fund, while increasing the revenues
from that particular source to another state or local government
account. This subsection does not apply to: (a) The dedication or use
of lottery revenues under RCW 67.70.240(3), in support of education or
education expenditures; (( or)) (b) a transfer of moneys to, or an
expenditure from, the budget stabilization account; or (c) the deposit
of funds to the basic health plan stabilization account under section
5 of this act or the appropriation of those funds.
(5) If the cost of any state program or function and the ongoing revenue necessary to fund the program or function are shifted to the state general fund on or after January 1, 2007, the state expenditure limit committee, acting pursuant to RCW 43.135.025(5), ((
increase the state expenditure limit to reflect the shift unless the
shifted revenue had previously been shifted from the general fund.
(6) For the purposes of chapter 1, Laws of 2008, "raises taxes" means any action or combination of actions by the legislature that increases state tax revenue deposited in any fund, budget, or account, regardless of whether the revenues are deposited into the general fund.
NEW SECTION. Sec. 7 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
June 1, 2010.