SB 6360

S-6040.1
  SENATE BILL 6360
State of Washington       69th Legislature       2026 Regular Session
By Senator Hasegawa
1      AN ACT Relating to establishing the family medicine residency
2  training grant program; amending RCW 82.26.020; reenacting and
3  amending RCW 43.79A.040 and 43.79A.040; adding a new chapter to Title
4  70 RCW; creating a new section; providing an effective date; and
5  providing an expiration date.
6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
7     NEW SECTION.   Sec. 1.   (1) The legislature finds that due to a
8 shortage of primary care physicians, many rural and economically
9 disadvantaged urban communities are medically underserved.
10     (2) The legislature further finds that the Washington state
11 department of health has established individuals living in rural
12 areas of Washington state are more likely to suffer from preventable
13 conditions and engage in activities that threaten health, such as
14 smoking cigarettes, and according to the United States centers for
15 disease control and prevention, communities of color, who live in
16 greater numbers in underserved urban areas, experience higher rates
17 of obesity, cancer, diabetes, and AIDS.
18     (3) The legislature finds community health centers provide
19 valuable primary and preventive health care services for people
20 living in rural and urban medically underserved communities, and such
21 service is provided regardless of a patient's ability to pay.
  p. 1  SB 6360
1     (4) The legislature further finds prevention education and access
2 to consistent primary health care can reduce health care costs in the
3 long term and improve general productivity.
4     (5) Consequently, it is to the benefit of not only underserved
5 communities but the state as a whole to invest in measures that
6 reduce primary care shortages and increase access to health care and
7 preventative medicine.
8     NEW SECTION.     Sec. 2.     Within funds appropriated to the
9 department of health for this purpose, and with the goal of
10 increasing the number of family medicine residency positions at
11 community health centers, and thereby increasing the number of family
12 medicine physicians working in underserved settings, a family
13 medicine residency training grant program is created. Grant funds
14 provided for the purpose of increasing the number of family medicine
15 residency positions at community health centers must be disbursed by
16 the department of health to at least three accredited, three-year
17 family medicine residency programs sponsored or sited at community
18 health centers in rural or urban medically underserved areas. In the
19 first year, and each subsequent year thereafter, family medicine
20 residency programs to which the grant funds are awarded shall offer
21 at least two first-year postgraduate residency positions in family
22 medicine. In the second year, and each subsequent year thereafter,
23 these family medicine residency programs shall also offer at least
24 two second-year postgraduate residency positions in family medicine.
25 In the third year, and each subsequent year thereafter, these family
26 medicine residency programs shall also offer at least two third-year
27 postgraduate residency positions in family medicine.
28     NEW SECTION.   Sec. 3.   The joint legislative audit and review
29 committee shall conduct a performance audit and evaluation of the
30 family medicine residency training grant program created in section 2
31 of this act every five years. The first audit must be conducted by
32 December 31, 2033. The audit must include a comparison of family
33 medicine physicians who did their postgraduate family medicine
34 residency training at community health centers with those who did
35 their postgraduate family medicine residency training in other
36 programs to determine whether the location of the family medicine
37 residency training influenced or affected where the resident
38 ultimately chose to work.
  p. 2  SB 6360
1     NEW SECTION. Sec. 4. (1) The family medicine residency training
2 account is created in the custody of the state treasurer. No
3 appropriation is required for expenditures of funds from the account.
4 The account is not subject to allotment procedures under chapter
5 43.88 RCW except for moneys used for program administration.
6     (2) The department of health shall deposit into the account all
7 moneys received from private contributions for the program. The
8 account must be self-sustaining and consist of private contributions
9 for the family medicine residency training grant program.
10     (3) Expenditures from the account may be used solely for grants
11 to family medicine residency programs sponsored or sited in community
12 health centers in rural or urban medically underserved areas and
13 costs associated with program administration by the department of
14 health.
15     (4) Disbursements from the account may     be   made   only   on   the
16 authorization of the department of health.
17     Sec. 5. RCW 82.26.020 and 2019 c 445 s 404 are each amended to
18 read as follows:
19     (1) There is levied and collected a tax upon the sale, handling,
20 or distribution of all tobacco products in this state at the
21 following rate:
22     (a) For cigars except little cigars, ninety-five percent of the
23 taxable sales price of cigars, not to exceed sixty-five cents per
24 cigar;
25     (b) For all tobacco products except those covered under separate
26 provisions of this subsection, ninety-five percent of the taxable
27 sales price. The tax imposed on a product under this subsection must
28 be reduced by fifty percent if that same product is issued a modified
29 risk tobacco product order by the secretary of the United States
30 department of health and human services pursuant to Title 21 U.S.C.
31 Sec. 387k(g)(1), or by twenty-five percent if that same product is
32 issued a modified risk tobacco product order by the secretary of the
33 United States department of health and human services pursuant to
34 Title 21 U.S.C. Sec. 387k(g)(2). The tax reduction applies during the
35 period the modified risk tobacco product order is in effect;
36     (c) For moist snuff, as established in this subsection (1)(c) and
37 computed on the net weight listed by the manufacturer:
38     (i) On each single unit consumer-sized can or package whose net
39 weight is one and two-tenths ounces or less, a rate per single unit
  p. 3  SB 6360
1 that is equal to the greater of 2.526 dollars or eighty-three and
2 one-half percent of the cigarette tax under chapter 82.24 RCW
3 multiplied by twenty; or
4     (ii) On each single unit consumer-sized can or package whose net
5 weight is more than one and two-tenths ounces, a proportionate tax at
6 the rate established in (c)(i) of this subsection (1) on each ounce
7 or fractional part of an ounce; and
8     (d) For little cigars, an amount per cigar equal to the cigarette
9 tax under chapter 82.24 RCW.
10     (2) Taxes under this section must be imposed at the time the
11 distributor (a) brings, or causes to be brought, into this state from
12 without the state tobacco products for sale, (b) makes, manufactures,
13 fabricates, or stores tobacco products in this state for sale in this
14 state, (c) ships or transports tobacco products to retailers in this
15 state, to be sold by those retailers, or (d) handles for sale any
16 tobacco products that are within this state but upon which tax has
17 not been imposed.
18     (3)(a) The first $7,000,000 collected annually under this section
19 must be deposited into the family medicine residency training account
20 created in section 4 of this act.
21     (b) The remaining moneys collected under this section must be
22 deposited into the state general fund.
23     Sec. 6. RCW 43.79A.040 and 2025 c 399 s 13 and 2025 c 190 s 3
24 are each reenacted and amended to read as follows:
25     (1) Money in the treasurer's trust fund may be deposited,
26 invested, and reinvested by the state treasurer in accordance with
27 RCW 43.84.080 in the same manner and to the same extent as if the
28 money were in the state treasury, and may be commingled with moneys
29 in the state treasury for cash management and cash balance purposes.
30     (2) All income received from investment of the treasurer's trust
31 fund must be set aside in an account in the treasury trust fund to be
32 known as the investment income account.
33     (3) The investment income account may be utilized for the payment
34 of purchased banking services on behalf of treasurer's trust funds
35 including,   but  not   limited  to,   depository,  safekeeping,   and
36 disbursement functions for the state treasurer or affected state
37 agencies. The investment income account is subject in all respects to
38 chapter 43.88 RCW, but no appropriation is required for payments to
  p. 4  SB 6360
1 financial institutions. Payments must occur prior to distribution of
2 earnings set forth in subsection (4) of this section.
3     (4)(a) Monthly, the state treasurer must distribute the earnings
4 credited to the investment income account to the state general fund
5 except under (b), (c), and (d) of this subsection.
6     (b) The following accounts and funds must receive their
7 proportionate share of earnings based upon each account's or fund's
8 average daily balance for the period: The 24/7 sobriety account, the
9 Washington promise scholarship account, the Gina Grant Bull memorial
10 legislative page scholarship account, the Rosa Franklin legislative
11 internship program scholarship account, the Washington advanced
12 college tuition payment program account, the Washington college
13 savings program account, the accessible communities account, the
14 Washington achieving a better life experience program account, the
15 Washington career and college pathways innovation challenge program
16 account, the community and technical college innovation account, the
17 agricultural local fund, the American Indian scholarship endowment
18 fund, the behavioral health loan repayment and scholarship program
19 account, the Billy Frank Jr. national statuary hall collection fund,
20 the foster care scholarship endowment fund, the foster care endowed
21 scholarship trust fund, the contract harvesting revolving account,
22 the Washington state combined fund drive account, the county 911
23 excise tax account, the county road administration board emergency
24 loan account, the toll collection account, the developmental
25 disabilities endowment trust fund, the energy account, the energy
26 facility site evaluation council account, the fair fund, the family
27 and medical leave insurance account, the family medicine residency
28 training account, the Fern Lodge maintenance account, the fish and
29 wildlife federal lands revolving account, the natural resources
30 federal lands revolving account, the food animal veterinarian
31 conditional scholarship account, the forest health revolving account,
32 the fruit and vegetable inspection account, the educator conditional
33 scholarship account, the game farm alternative account, the GET ready
34 for math and science scholarship account, the Washington global
35 health technologies and product development account, the grain
36 inspection revolving fund, the Washington history day account, the
37 industrial insurance rainy day fund, the law enforcement officers'
38 and firefighters' plan 2 expense fund, the local tourism promotion
39 account, the low-income home rehabilitation account, the medication
40 for people living with HIV rebate revenue account, the homeowner
  p. 5  SB 6360
1 recovery account, the multiagency permitting team account, the
2 northeast Washington wolf-livestock management account, the pollution
3 liability insurance program trust account, the public use general
4 aviation airport loan revolving account, the regional transportation
5 investment district account, the rural rehabilitation account, the
6 Washington sexual assault kit account, the stadium and exhibition
7 center account, the youth athletic facility account, the self-
8 insurance revolving fund, the children's trust fund, the Washington
9 horse racing commission Washington bred owners' bonus fund and
10 breeder awards account, the Washington horse racing commission class
11 C purse fund account, the individual development account program
12 account, the Washington horse racing commission operating account,
13 the life sciences discovery fund, the Washington state library-
14 archives building account, the reduced cigarette ignition propensity
15 account, the center for deaf and hard of hearing youth account, the
16 school for the blind account, the public employees' and retirees'
17 insurance reserve fund, the school employees' benefits board
18 insurance reserve fund, the public employees' and retirees' insurance
19 account, the school employees' insurance account, the long-term
20 services and supports trust account, the radiation perpetual
21 maintenance fund, the Indian health improvement reinvestment account,
22 the department of licensing tuition recovery trust fund, the student
23 achievement council tuition recovery trust fund, the tuition recovery
24 trust fund, the industrial insurance premium refund account, the
25 mobile home park relocation fund, the natural resources deposit fund,
26 the Washington state health insurance pool account, the federal
27 forest revolving account, the Washington saves administrative trust
28 account, and the library operations account.
29     (c) The following accounts and funds must receive 80 percent of
30 their proportionate share of earnings based upon each account's or
31 fund's average daily balance for the period: The advance right-of-way
32 revolving fund, the advanced environmental mitigation revolving
33 account, the federal narcotics asset forfeitures account, the high
34 occupancy vehicle account, the local rail service assistance account,
35 and the miscellaneous transportation programs account.
36     (d) Any state agency that has independent authority over accounts
37 or funds not statutorily required to be held in the custody of the
38 state treasurer that deposits funds into a fund or account in the
39 custody of the state treasurer pursuant to an agreement with the
40 office of the state treasurer shall receive its proportionate share
  p. 6  SB 6360
1  of earnings based upon each account's or fund's average daily balance
2  for the period.
3      (5) In conformance with Article II, section 37 of the state
4  Constitution, no trust accounts or funds shall be allocated earnings
5  without the specific affirmative directive of this section.
6     Sec. 7. RCW 43.79A.040 and 2025 c 399 s 14 and 2025 c 190 s 4
7 are each reenacted and amended to read as follows:
8     (1) Money in the treasurer's trust fund may be deposited,
9 invested, and reinvested by the state treasurer in accordance with
10 RCW 43.84.080 in the same manner and to the same extent as if the
11 money were in the state treasury, and may be commingled with moneys
12 in the state treasury for cash management and cash balance purposes.
13     (2) All income received from investment of the treasurer's trust
14 fund must be set aside in an account in the treasury trust fund to be
15 known as the investment income account.
16     (3) The investment income account may be utilized for the payment
17 of purchased banking services on behalf of treasurer's trust funds
18 including,   but  not   limited  to,   depository,  safekeeping,  and
19 disbursement functions for the state treasurer or affected state
20 agencies. The investment income account is subject in all respects to
21 chapter 43.88 RCW, but no appropriation is required for payments to
22 financial institutions. Payments must occur prior to distribution of
23 earnings set forth in subsection (4) of this section.
24     (4)(a) Monthly, the state treasurer must distribute the earnings
25 credited to the investment income account to the state general fund
26 except under (b), (c), and (d) of this subsection.
27     (b) The following accounts and funds must receive their
28 proportionate share of earnings based upon each account's or fund's
29 average daily balance for the period: The 24/7 sobriety account, the
30 Washington promise scholarship account, the Gina Grant Bull memorial
31 legislative page scholarship account, the Rosa Franklin legislative
32 internship program scholarship account, the Washington advanced
33 college tuition payment program account, the Washington college
34 savings program account, the accessible communities account, the
35 Washington achieving a better life experience program account, the
36 Washington career and college pathways innovation challenge program
37 account, the community and technical college innovation account, the
38 agricultural local fund, the American Indian scholarship endowment
39 fund, the behavioral health loan repayment and scholarship program
  p. 7  SB 6360
1 account, the Billy Frank Jr. national statuary hall collection fund,
2 the foster care scholarship endowment fund, the foster care endowed
3 scholarship trust fund, the contract harvesting revolving account,
4 the Washington state combined fund drive account, the county 911
5 excise tax account, the county road administration board emergency
6 loan account, the toll collection account, the developmental
7 disabilities endowment trust fund, the energy account, the energy
8 facility site evaluation council account, the fair fund, the family
9 and medical leave insurance account, the family medicine residency
10 training account, the Fern Lodge maintenance account, the fish and
11 wildlife federal lands revolving account, the natural resources
12 federal lands revolving account, the food animal veterinarian
13 conditional scholarship account, the forest health revolving account,
14 the fruit and vegetable inspection account, the educator conditional
15 scholarship account, the game farm alternative account, the GET ready
16 for math and science scholarship account, the Washington global
17 health technologies and product development account, the grain
18 inspection revolving fund, the Washington history day account, the
19 industrial insurance rainy day fund, the law enforcement officers'
20 and firefighters' plan 2 expense fund, the local tourism promotion
21 account, the low-income home rehabilitation account, the medication
22 for people living with HIV rebate revenue account, the homeowner
23 recovery account, the multiagency permitting team account, the
24 northeast Washington wolf-livestock management account, the public
25 use general aviation airport loan revolving account, the regional
26 transportation investment district account, the rural rehabilitation
27 account, the Washington sexual assault kit account, the stadium and
28 exhibition center account, the youth athletic facility account, the
29 self-insurance revolving fund, the children's trust fund, the
30 Washington horse racing commission Washington bred owners' bonus fund
31 and breeder awards account, the Washington horse racing commission
32 class C purse fund account, the individual development account
33 program account, the Washington horse racing commission operating
34 account, the life sciences discovery fund, the Washington state
35 library-archives building account, the reduced cigarette ignition
36 propensity account, the center for deaf and hard of hearing youth
37 account, the school for the blind account, the public employees' and
38 retirees' insurance reserve fund, the school employees' benefits
39 board insurance reserve fund, the public employees' and retirees'
40 insurance account, the school employees' insurance account, the long-
  p. 8  SB 6360
1 term services and supports trust account, the radiation perpetual
2 maintenance fund, the Indian health improvement reinvestment account,
3 the department of licensing tuition recovery trust fund, the student
4 achievement council tuition recovery trust fund, the tuition recovery
5 trust fund, the industrial insurance premium refund account, the
6 mobile home park relocation fund, the natural resources deposit fund,
7 the Washington state health insurance pool account, the federal
8 forest revolving account, the Washington saves administrative trust
9 account, and the library operations account.
10     (c) The following accounts and funds must receive 80 percent of
11 their proportionate share of earnings based upon each account's or
12 fund's average daily balance for the period: The advance right-of-way
13 revolving fund, the advanced environmental mitigation revolving
14 account, the federal narcotics asset forfeitures account, the high
15 occupancy vehicle account, the local rail service assistance account,
16 and the miscellaneous transportation programs account.
17     (d) Any state agency that has independent authority over accounts
18 or funds not statutorily required to be held in the custody of the
19 state treasurer that deposits funds into a fund or account in the
20 custody of the state treasurer pursuant to an agreement with the
21 office of the state treasurer shall receive its proportionate share
22 of earnings based upon each account's or fund's average daily balance
23 for the period.
24     (5) In conformance with Article II, section 37 of the state
25 Constitution, no trust accounts or funds shall be allocated earnings
26 without the specific affirmative directive of this section.
27     NEW SECTION.     Sec. 8.    Sections 2   through   4   of   this   act
28 constitute a new chapter in Title 70 RCW.
29     NEW SECTION.   Sec. 9.    Section 6 of this act expires July 1,
30 2030.
31     NEW SECTION.   Sec. 10.   Section 7 of this act takes effect July
32 1, 2030.
  --- END ---
  p. 9  SB 6360