Sponsor Statement for CS for HJR 18 (STA)

This resolution proposes an amendment to Article IX, Section 7 of the state constitution. The current article allows for the dedication of funds for a specific purpose as long as it existed by April 24, 1956. This resolution would allow a changing of a rate of a tax or license of which the proceeds are dedicated to a special purpose. This proposed amendment would be placed before the voters at the next general election, if approved by the Legislature.

I introduced this resolution because of the differing opinions represented by the attorney general's office and Legal Services in regards to the dedication of a tax increment to a specified purpose. In order to avoid litigation, especially if the proceeds of the tobacco tax are to be placed into the school fund or if the legislature changes any other tax rate or license fee, into which proceeds are to be placed into a dedicated fund, this resolution could be a solution to resolve that potential problem.

In the House State Affairs Committee, an amendment was adopted to make the amendment retroactive to October 1, 1997. This retroactivity coincides with the effective date of the tobacco tax as proposed in CSHB 1 (STA).