Bill Text: AZ SCR1037 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Liquor tax increase; alcohol abuse
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2011-02-02 - Referred to Senate FIN Committee [SCR1037 Detail]
Download: Arizona-2011-SCR1037-Introduced.html
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REFERENCE TITLE: liquor tax increase; alcohol abuse |
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State of Arizona Senate Fiftieth Legislature First Regular Session 2011
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SCR 1037 |
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Introduced by Senators Lopez, Jackson: Representatives Farley, Heinz, Miranda C
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A CONCURRENT RESOLUTION
enacting and ordering the submission to the people of a measure relating to liquor luxury tax revenues.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it resolved by the Senate of the State of Arizona, the House of Representatives concurring:
1. Under the power of the referendum, as vested in the Legislature, the following measure, relating to luxury tax revenues, is enacted to become valid as a law if approved by the voters and on proclamation of the Governor:
AN ACT
Amending title 36, chapter 18, article 1, Arizona Revised Statutes, by ADDING sections 36-2007, 36-2008 and 36-2009; Amending sections 42‑3001, 42-3052, 42-3103, 42-3104 and 42‑3221, Arizona Revised Statutes; amending title 42, chapter 3, article 3, Arizona Revised Statutes, by adding section 42-3105; amending section 42‑3106, Arizona Revised Statutes; relating to liquor luxury tax revenues.
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 36, chapter 18, article 1, Arizona Revised Statutes, is amended by adding sections 36-2007, 36-2008 and 36-2009, to read:
36-2007. Alcohol and substance abuse prevention and early intervention commission; membership
A. The alcohol and substance abuse prevention and early intervention commission is established consisting of the following members:
1. The director of the department of health services or the director's designee.
2. The director of the department of economic security or the director's designee.
3. The director of the Arizona health care cost containment system administration or the director's designee.
4. The director of the state department of corrections or the director's designee.
5. The director of the governor's office of highway safety or the director's designee.
6. The superintendant of public instruction or the superintendant's designee.
7. The director of the administrative office of the courts or the director's designee.
8. A professional who has expertise in alcohol and substance prevention research.
9. A professional who has expertise in alcohol and substance abuse treatment.
10. A professional who has expertise in alcohol and substance abuse prevention.
11. A professional who has expertise in recovery and family support services.
12. A professional who has expertise in fetal alcohol spectrum disorder and who works with individuals and families in regard to diagnostic screening and intervention.
13. One public member who has been personally impacted by alcohol or substance abuse and who is a resident of a county with a population of two million or more persons.
14. One public member who has been personally impacted by alcohol or substance abuse and who is a resident of a county with a population of five hundred thousand or more but less than two million persons.
15. One public member who has been personally impacted by alcohol or substance abuse and who is a resident of a county with a population of less than five hundred thousand persons.
16. One tribal member who is a resident of a county that is not represented by a member who is appointed pursuant to paragraph 13, 14 or 15.
B. Commission members who serve pursuant to subsection A, paragraphs 1 through 7 are nonvoting members and are not counted for the purposes of determining a quorum.
C. Commission members who serve pursuant to subsection A, paragraphs 8 through 16 serve four year terms and may serve more than one term. The governor shall make the initial appointment of these members. After the expiration of the term of a member who was appointed by the governor, the commission by majority vote shall select a member who has the same qualifications as the vacating member. The commission shall also select a member to fill a vacancy in any initial term.
D. The commission shall elect a chairperson and vice‑chairperson at its first annual meeting.
E. The commission shall meet four times each year and at the call of the commission chairperson.
F. Commission members are not eligible to receive compensation, but members who serve pursuant to subsection A, paragraphs 8 through 16 are eligible for reimbursement of expenses under title 38, chapter 4, article 2, subject to the availability of monies.
36-2008. Alcohol and substance abuse prevention and early intervention commission; powers and duties
A. The commission shall:
1. Establish goals and policies regarding the prevention and early intervention of alcohol and substance abuse.
2. Allocate resources to the division of behavioral health in the department of health services for evidence-based and research-based culturally competent programs and services for the prevention, intervention and treatment of alcohol and substance abuse.
3. Allocate forty per cent of monies in the alcohol and drug abuse damage mitigation fund for alcohol and substance abuse prevention programs that use evidence-based practices. These programs shall include identification and referral of clients.
4. Allocate sixty per cent of monies in the alcohol and drug abuse damage mitigation fund for alcohol and substance abuse treatment programs that use evidence-based practices. These programs shall include diagnosis services and professional and workforce development.
5. Appoint a panel of commission members to review and evaluate proposals or requests for projects or services and recommend to the commission the allocation of available monies.
6. Establish a mechanism to review the contracts awarded by the commission to ensure that the monies are used in accordance with the proposals approved by the commission.
B. The commission may:
1. Use monies in the alcohol and drug abuse damage mitigation fund established by section 36-2009 to contract with individuals, organizations, corporations and institutions, public or private, in this state for any projects or services that, in the commission's determination, may advance prevention, intervention and treatment of alcohol and substance abuse.
2. Accept or receive monies from any source, including restricted or unrestricted gifts and contributions from individuals, foundations, corporations and other organizations and institutions.
3. Obtain expert services to assist in the evaluation of requests and proposals by the committees of the commission.
4. Request cooperation from any state agency for the purposes prescribed in this section.
5. Prepare and submit a report on or before January 15 of each year to the governor, the president of the senate and the speaker of the house of representatives. The report shall describe the activities of the commission, the projects or services proposed to the commission, the projects or services for which the commission has awarded a contract and the amount of monies necessary for each proposal, the cost of each proposal for which a contract was awarded, the names and addresses of the recipients of each contract and the purpose for which each contract was made. The commission shall provide a copy of each report to the secretary of state.
36-2009. Alcohol and drug abuse damage mitigation fund; nonlapsing
A. The alcohol and drug abuse damage mitigation fund is established consisting of monies collected pursuant to section 42-3105 and legislative appropriations. The alcohol and substance abuse prevention and early intervention commission shall administer the fund.
B. On notice from the commission, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.
C. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.
D. Except as provided by subsection E of this section, the commission shall use fund monies to supplement and not supplant other local, state or federal expenditures for alcohol and substance abuse prevention and early intervention programs and services and the legislature may appropriate additional monies to the commission and may authorize the commission to spend additional appropriated monies for its purposes pursuant to section 36-2008.
E. The adjustment account is established in the fund to compensate for decreases in revenue distributions resulting from lower luxury tax collections as a result of tax increases prescribed by section 42‑3052, subsection A, paragraphs 1 through 4. The adjustment account consists of monies identified and administered by the commission as follows:
1. Three cents of each dollar in the fund for transfer of appropriate amounts to the corrections fund established by section 41‑1641.
2. Two cents of each dollar in the fund for transfer of appropriate amounts to the drug treatment and education fund established by section 13‑901.02.
3. Any monies in the adjustment account that exceed the amount needed to compensate for lower luxury tax collections shall revert at the end of each fiscal year to the alcohol and drug abuse damage mitigation fund.
F. The commission shall not spend more than seven per cent of fund monies on administrative costs.
Sec. 2. Section 42-3001, Arizona Revised Statutes, is amended to read:
42-3001. Definitions
In this chapter, unless the context otherwise requires:
1. "Affix" and "affixed" includes imprinting tax meter stamps on packages and individual containers as authorized by the department.
2. "Cider" means vinous liquor that is made from the normal alcoholic fermentation of the juice of sound, ripe apples, including flavored, sparkling and carbonated cider and cider made from condensed apple must, and that contains more than one-half of one per cent of alcohol by volume but not more than seven per cent of alcohol by volume.
3. "Cigar" means any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco other than any roll of tobacco that is a cigarette, as defined in paragraph 4, subdivision (b) of this section.
4. "Cigarette" means either of the following:
(a) Any roll of tobacco or any substitute for tobacco wrapped in paper or any substance not containing tobacco.
(b) Any roll of tobacco wrapped in any substance containing tobacco that, because of its appearance, the type of tobacco used in the filler or its packaging and labeling, is likely to be offered to or purchased by a consumer as a cigarette described in subdivision (a) of this paragraph. This subdivision shall be interpreted consistently with the classification guidelines established by the federal alcohol and tobacco tax and trade bureau.
5. "Cigarette distributor" means a distributor of cigarettes without stamps affixed as required by this article who is required to be licensed under section 42-3201. Cigarette distributor does not include a retailer or any person who holds a permit as a cigarette manufacturer, export warehouse proprietor or importer under 26 United States Code section 5712 if the person sells or distributes cigarettes in this state only to licensed cigarette distributors or to another person who holds a permit under 26 United States Code section 5712 as an export warehouse proprietor or manufacturer.
6. "Cigarette importer" means a distributor who directly or indirectly imports into the United States a finished cigarette for sale or distribution and who is required to be licensed under section 42-3201.
7. "Cigarette manufacturer" means a distributor who manufactures, fabricates, assembles, processes or labels a finished cigarette and who is required to be licensed under section 42-3201.
8. "Consumer" means a person in this state who comes into possession of any luxury subject to the tax imposed by this chapter and who, on coming into possession of the luxury, is not a distributor intending to sell or distribute the luxury, retailer or wholesaler.
9. "Distributor" means any person who manufactures, produces, ships, transports or imports into this state or in any manner acquires or possesses for the purpose of making the first sale of the following:
(a) Cigarettes without stamps affixed as required by this article.
(b) Other tobacco products upon which the taxes have not been paid as required by this chapter.
10. "Domestic farm winery" has the same meaning prescribed in section 4-101.
11. "Domestic microbrewery" has the same meaning prescribed in section 4-101.
12. "First sale" means the initial sale or distribution in intrastate commerce or the initial use or consumption of cigarettes or other tobacco products.
13. "Luxury" means any article, object or device upon which a tax is imposed under this chapter.
14. "Malt liquor" means any liquid that contains more than one‑half of one per cent alcohol by volume and that is made by the process of fermentation and not distillation of hops or grains, but not including:
(a) Liquids made by the process of distillation of such substances.
(b) Medicines that are unsuitable for beverage purposes.
15. "Person" means any individual, firm, partnership, joint venture, association, corporation, municipal corporation, estate, trust, club, society or other group or combination acting as a unit, and the plural as well as the singular number.
16. "Retailer" means any person who comes into possession of any luxury subject to the taxes imposed by this chapter for the purpose of selling it for consumption and not for resale.
17. "Spirituous liquor" means any liquid that contains more than one-half of one per cent alcohol by volume, that is produced by distillation of any fermented substance and that is used or prepared for use as a beverage. Spirituous liquor does not include medicines that are unsuitable for beverage purposes.
18. "Tobacco products" means all luxuries included in section 42-3052, subsection A, paragraphs 5 through 9, except that for the purposes of article 5.1 of this chapter tobacco products has the same meaning prescribed in section 42-3221.
19. "Vinous liquor" means any liquid that contains more than one‑half of one per cent alcohol by volume and that is made by the process of fermentation of grapes, berries, fruits, vegetables or other substances but does not include:
(a) Liquids in which hops or grains are used in the process of fermentation.
(b) Liquids made by the process of distillation of hops or grains.
(c) Medicines that are unsuitable for beverage purposes.
20. "Wholesaler" means a person who sells any spirituous, vinous or malt liquor taxed under this chapter to retail dealers or for the purposes of resale only.
Sec. 3. Section 42-3052, Arizona Revised Statutes, is amended to read:
42-3052. Classifications of luxuries; rates of tax
A. The taxes under this chapter are imposed at the following rates:
1. On each sealed container of spirituous liquor at the rate of three fifteen dollars eighty cents per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.
2. On each container of vinous liquor, except cider, of which the alcoholic content is not greater than twenty‑four per cent by volume at the rate of eighty‑four three dollars forty cents per gallon and at a proportionate rate for any lesser or greater quantity than one gallon.
3. On each container of vinous liquor of which the alcoholic content is greater than twenty‑four per cent by volume, containing eight ounces or less, twenty‑five thirty-five cents, and for each eight ounces for containers containing more than eight ounces, twenty‑five thirty-five cents.
4. On each gallon of malt liquor or cider, sixteen one dollar twenty‑three cents, and at a proportionate rate for any lesser or greater quantity than one gallon.
5. On each cigarette, nine‑tenths cent.
6. On smoking tobacco, snuff, fine cut chewing tobacco, cut and granulated tobacco, shorts and refuse of fine cut chewing tobacco, and refuse, scraps, clippings, cuttings and sweepings of tobacco, excluding tobacco powder or tobacco products used exclusively for agricultural or horticultural purposes and unfit for human consumption, two cents per ounce or major fraction of an ounce.
7. On all cavendish, plug or twist tobacco, one‑half cent per ounce or fractional part of an ounce.
8. On each twenty small cigars or fractional part weighing not more than three pounds per thousand, four cents.
9. On cigars of all descriptions except those included in paragraph 8 of this section, made of tobacco or any tobacco substitute:
(a) If manufactured to retail at not more than five cents each, two cents on each three cigars.
(b) If manufactured to retail at more than five cents each, two cents on each cigar.
B. For each year beginning January 1, the department shall adjust the collar amounts prescribed by subsection A, paragraphs 1 through 4 according to the average annual change in the metropolitan Phoenix consumer price index published by the United States bureau of labor statistics. END_STATUTE
Sec. 4. Section 42-3103, Arizona Revised Statutes, is amended to read:
42-3103. Monies allocated for state school aid
The department shall allocate the following monies for the purpose of state school aid:
1. 1.17 .22 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 1.
2. 14 10 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 3.
3. 19.44 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 5.
Sec. 5. Section 42-3104, Arizona Revised Statutes, is amended to read:
42-3104. Monies allocated to the corrections fund
Through June 30, 2015, the department shall deposit, pursuant to sections 35‑146, 35‑147 and 42‑1116, the following monies in the corrections fund established by section 41‑1641:
1. 20 3.80 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 1.
2. 50 12.35 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 2.
3. 50 35.71 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 3.
4. 50 6.50 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 4.
5. 11.11 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 5.
6. 50 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 6.
7. 50 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 7.
8. 50 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 8.
9. 50 per cent of the monies collected pursuant to section 42‑3052, subsection A, paragraph 9.
Sec. 6. Title 42, chapter 3, article 3, Arizona Revised Statutes, is amended by adding section 42-3105, to read:
42-3105. Monies allocated to the alcohol and drug abuse damage mitigation fund
The department shall deposit the following monies in the alcohol and drug abuse damage MITIGATION fund established by section 36-2009:
1. 81.01 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 1.
2. 75.29 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 2.
3. 28.57 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 3.
4. 86.99 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 4.
Sec. 7. Section 42-3106, Arizona Revised Statutes, is amended to read:
42-3106. Monies allocated to the drug treatment and education fund; state department of corrections revolving fund
A. Notwithstanding any law to the contrary, seven per cent of the monies collected pursuant to section 42‑3052, paragraph 1 and eighteen per cent of the monies collected pursuant to section 42‑3052, paragraphs 2, 3 and 4 the following percentages shall be deposited in the drug treatment and education fund established by section 13‑901.02:
1. 1.33 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 1.
2. 4.00 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 2.
3. 12.86 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 3.
4. 2.34 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 4.
B. Notwithstanding any law to the contrary, three per cent of the monies collected pursuant to section 42‑3052, paragraph 1 and seven ____ per cent of the monies collected pursuant to section 42‑3052, paragraphs 2, 3 and 4 the following percentages shall be deposited in a separate revolving fund of the state department of corrections:
1. .57 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 1.
2. 1.73 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 2.
3. 5.00 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 3.
4. .91 per cent of the monies collected pursuant to section 42-3052, subsection A, paragraph 4.
C. Monies in the separate revolving fund of the state department of corrections shall be used for the following purposes:
1. Implementing section 31‑411.01.
2. Offender participation in appropriate drug treatment or education programs that are administered by a qualified agency, organization or individual and that are approved by the department of health services for offenders who the state department of corrections determines have a history of substance abuse and who have been released from confinement.
D. Monies that are deposited in the state department of corrections revolving fund pursuant to subsection B of this section shall not revert to the state general fund if unexpended at the close of the fiscal year.
E. If the state department of corrections receives a federal grant, any portion of the monies that are deposited pursuant to subsection B of this section may be used as a cash match.
Sec. 8. Section 42-3221, Arizona Revised Statutes, is amended to read:
42-3221. Definitions
In this article, unless the context otherwise requires:
1. "Adult" means an individual who is at least the legal minimum purchase age.
2. "Consumer" has the same meaning prescribed in section 42‑3001. Consumer does not include an Indian tribe, an enterprise owned by a tribe, a tribal member or an entity owned by a tribal member that purchases tobacco products in connection with a delivery sale for resale on the tribe's or tribal member's reservation to the ultimate user of the tobacco products.
3. "Delivery sale" means any sale of tobacco products to a consumer in this state in which either:
(a) The consumer submits the order for the sale by means of telephonic or other voice transmission, mail, a delivery service or the internet or other on‑line service.
(b) The tobacco products are delivered by use of mail or a delivery service.
4. "Delivery service" means any person that is engaged in the commercial delivery of letters, packages or other containers.
5. "Legal minimum purchase age" means the minimum age at which an individual may legally purchase tobacco products in this state.
6. "Mail" or "mailing" means the shipment of tobacco products through the United States postal service.
7. "Retailer" means any person who is not a licensed distributor that comes into possession of tobacco products subject to tax under this chapter for the purposes of selling the tobacco products to consumers.
8. "Shipping container" means a container in which tobacco products are shipped in connection with a delivery sale.
9. "Shipping document" means a bill of lading, airbill, United States postal service form or any other document used to evidence the undertaking by a delivery service to deliver letters, packages or other containers.
10. "Tobacco products" means all luxuries included in section 42‑3052, subsection A, paragraph 5, all luxuries included in section 42‑3052, subsection A, paragraph 6 and all luxuries included in section 42‑3052, subsection A, paragraph 7. Tobacco products does not include pipe tobacco or cigars.
Sec. 9. Initial terms of members of the commission
A. Notwithstanding section 36-2007, Arizona Revised Statutes, as added by this act, the initial terms of members of the alcohol and substance abuse prevention and early intervention commission appointed pursuant to section 36-2007, subsection A, paragraphs 8 through 16, Arizona Revised Statutes, as added by this act, are:
1. Two terms ending January 1, 2012.
2. Two terms ending January 1, 2013.
3. Two terms ending January 1, 2014.
4. Three terms ending January 1, 2015.
B. The commission shall make all subsequent appointments as prescribed by statute.
2. The Secretary of State shall submit this proposition to the voters at the next general election as provided by article IV, part 1, section 1, Constitution of Arizona.
