75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1112
 
                         House Bill 2461
 
Sponsored by Representative CANNON, Senators DINGFELDER,
  MORRISETTE; Representative DEMBROW, Senator ROSENBAUM
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Imposes prevention, treatment and recovery tax on malt
beverages. Establishes Alcohol Impact Remediation Fund.
Continuously appropriates moneys in fund to Department of Human
Services. Distributes moneys to alcohol and drug abuse
prevention, treatment and recovery services.
  Applies to prevention, treatment and recovery tax reporting
periods beginning on or after effective date of Act.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to prevention, treatment and recovery tax; creating new
  provisions; amending ORS 471.805; appropriating money;
  prescribing an effective date; and providing for revenue
  raising that requires approval by a three-fifths majority.
  Whereas Oregon ranks 49th among states in its malt beverage
taxation rate; and
  Whereas Oregon's malt beverage tax has not been raised in 32
years; and
  Whereas Oregon's untreated substance abuse costs $4.15 billion
in lost earnings, $8.13 million for health care and $967 million
for enforcement and social services for a total cost of $5.13
billion each year; and
  Whereas 'addiction' is defined as a chronic, relapsing brain
disease that is both preventable and treatable; and
  Whereas treatment capacity is so low that less than 25 percent
of Oregon adults and only two percent of Oregon youth who need
substance abuse services receive the help they need; and
  Whereas research, the Governor's Statewide Leadership Team for
Alcohol-Free Kids and the Governor's Council on Alcohol and Drug
Abuse Programs show that increasing alcohol taxes reduces access
to and availability of alcohol to underage drinkers; and
  Whereas underage drinkers consumed an estimated 15.3 percent of
all alcohol sold in Oregon in 2005, totaling an estimated $278
million in sales and estimated profits of $135 million to the
alcohol industry; and
  Whereas alcohol use by Oregon's eighth graders is 76 percent
higher than the national average; and
  Whereas on average, half of the students in every 11th grade
classroom in Oregon drink; and
 
  Whereas raising the malt beverage tax and indexing those taxes
to the Consumer Price Index to keep pace with inflation is
imperative to protecting Oregon's citizens; now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2009 Act is added to and made
a part of ORS chapter 473. + }
  SECTION 2.  { + (1) In addition to and not in lieu of any
charge imposed under ORS 473.030 or other law, in order to
recover a portion of the government costs incurred as a result of
the consumption of malt beverages, a manufacturer or an importing
distributor of malt beverages shall be subject to a prevention,
treatment and recovery tax of $49.61 per barrel of 31 gallons of
malt beverage.
  (2) The prevention, treatment and recovery tax shall be applied
proportionally to quantities in containers of different capacity
than the quantity specified in this section.
  (3) The prevention, treatment and recovery tax shall be paid to
the Oregon Liquor Control Commission at the same time that
privilege taxes are paid to the commission.
  (4) For all purposes of collection and enforcement, reporting,
claims for refunds, penalties, interest, record keeping,
inspection of records, appeals, confidentiality and disclosure of
information, the prevention, treatment and recovery tax shall be
considered to be a privilege tax imposed under ORS 473.030. + }
  SECTION 3. ORS 471.805 is amended to read:
  471.805. (1) Except as otherwise provided in ORS 471.810 (2),
all money collected by the Oregon Liquor Control Commission under
this chapter and ORS chapter 473 and privilege taxes shall be
remitted to the State Treasurer who shall credit it to a suspense
account of the commission. Whenever the commission determines
that moneys have been received by it in excess of the amount
legally due and payable to the commission or that it has received
money to which it has no legal interest, or that any license fee
or deposit is properly refundable, the commission is authorized
and directed to refund such money by check drawn upon the State
Treasurer and charged to the suspense account of the commission.
After withholding refundable license fees and such sum, not to
exceed $250,000, as it considers necessary as a revolving fund
for a working cash balance for the purpose of paying travel
expenses, advances, other miscellaneous bills and extraordinary
items which are payable in cash immediately upon presentation,
the commission shall direct the State Treasurer to transfer the
money remaining in the suspense account   { - to - }   { + as
follows:
  (a) Amounts collected under section 2 of this 2009 Act shall be
transferred to the Alcohol Impact Remediation Fund created under
section 4 of this 2009 Act; and
  (b) The balance of the suspense account following the transfer
of funds under paragraph (a) of this subsection shall be
transferred to + } the Oregon Liquor Control Commission Account
in the General Fund. Moneys in the Oregon Liquor Control
Commission Account are continuously appropriated to the
commission to be distributed and used as required or allowed by
law.
  (2) All necessary expenditures of the commission incurred in
carrying out the purposes required of the commission by law,
including the salaries of its employees, purchases made by the
commission and such sums necessary to reimburse the $250,000
revolving fund, shall be audited and paid from the Oregon Liquor
Control Commission Account in the General Fund, upon warrants
drawn by the Oregon Department of Administrative Services,
pursuant to claims duly approved by the commission.
  SECTION 4.  { + (1) The Alcohol Impact Remediation Fund is
created, separate and distinct from the General Fund. Interest
earned by the Alcohol Impact Remediation Fund shall be credited
to the Alcohol Impact Remediation Fund.
  (2) Moneys in the Alcohol Impact Remediation Fund are
continuously appropriated to the Department of Human Services to
be distributed in each calendar quarter as follows:
  (a) 15 percent for the purpose of funding section 8 (1) and
(2), chapter 14, Oregon Laws 2008.
  (b) The remaining balance in the fund shall be used as follows:
  (A) 6 percent for statewide alcohol and drug use prevention
initiatives;
  (B) 14 percent for other alcohol and drug use prevention
purposes;
  (C) 72 percent for treatment of alcohol and drug addiction; and
  (D) 8 percent for alcohol and drug recovery support services.
  (3) The distribution described in subsection (2)(b) of this
section shall be subject to a strategic planning process
conducted at the start of each biennium by the department,
involving counties, tribes and private and public organizations
involved in addiction prevention, treatment and recovery
programs.
  (4)(a) Any recipient of funds under subsection (2)(b) of this
section, including the department, may not use more than eight
percent of the funds received for administrative purposes.
  (b) If requested by the department, a recipient of funds under
this section shall cause an independent audit of the expenditure
of these funds to be performed to ensure that the expenditure of
the funds is for the purposes designated. The recipient shall
submit a report of the audit to the department.
  (c) The department may not be charged and is not liable for the
costs of an audit described in this subsection. + }
  SECTION 5.  { + Section 2 of this 2009 Act applies to
prevention, treatment and recovery tax reporting periods
beginning on or after the effective date of this 2009 Act. + }
  SECTION 6.  { + The amendments to ORS 471.805 by section 3 of
this 2009 Act become operative 60 days after the effective date
of this 2009 Act. + }
  SECTION 7.  { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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