5794-S AMS BRAU S3257.2
SSB 5794 - S AMD TO S AMD (S-3247.2/25) 442
By Senator Braun
NOT ADOPTED 04/19/2025
On page 26, beginning on line 9, strike all of subsection (4)
Renumber the remaining subsections consecutively and correct any internal references accordingly.
Beginning on page 29, line 10, strike all of section 202
On page 36, after line 9, insert the following:
"NEW SECTION.  Sec. 401. (1) This section is the tax preference performance statement for the tax preference contained in RCW 82.04.272. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes this tax preference as one intended to reduce structural inefficiencies in the tax structure, as indicated in RCW 82.32.808(2)(d).
(3) It is the legislature's specific public policy objective to foster a robust and sustainable health care ecosystem in this state by ensuring the continued access to essential prescription medications for all Washingtonians in a cost-effective and efficient manner.
(4) This tax preference is crucial for sustaining the health care ecosystem in Washington due to the pharmaceutical wholesale industry operating on high-volume, low-profit margins. Without this tax preference, the pharmaceutical wholesale industry would see an increase in operational costs, which would be passed down to purchasers like pharmacies and hospitals located in the state, thereby driving up the price of essential medications for health care providers and, ultimately, Washingtonians.
(5) The tax preference also serves to ensure the state's continued access to prescription medications during both routine and emergency situations. By maintaining a strong pharmaceutical wholesale presence throughout Washington state, the legislature aims to encourage continued siting of pharmaceutical wholesale warehouses in order to provide health care providers with confidence that essential drugs will be readily available and accessible, and thereby safeguarding the health and well-being of the state's residents in all circumstances. It is the legislature's intent to preserve a tax preference for prescription drug warehousing, ensuring that at least three pharmaceutical distribution warehouses remain operational within the state.
(6) If a review finds that there are at least three pharmaceutical distribution warehouses operational within the state then the legislature intends to extend the expiration date of the tax preference.
(7) In order to obtain the data necessary to perform the review in subsection (6) of this section, the joint legislative audit and review committee may refer to the licensing database managed by the department of health's pharmacy quality assurance commission, and any other data collected by the state."
Renumber the remaining sections consecutively and correct any internal references accordingly.
On page 37, line 3, after "82.04.29004," strike "82.04.280,"
On page 37, line 6, after "82.04.44525," strike "82.04.272,"
EFFECT: Removes the repeal of the preferential B&O tax rate for warehousing and reselling prescription drugs; and adds a tax preference performance statement.
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