6085 AMS STRA WILS 15

6085 AMS STRA WILS 15

SB 6085 - S AMD - 003

BySenator Stranigan

WITHDRAWN 10/13/95

On page 1, after line 5, strike all material down through line 28 on page 16 and insert the following:

"PART I

STATE CONTRIBUTION

NEW SECTION. Sec. 101. A new section is added to chapter 43.79 RCW to read as follows:

Any moneys that may be donated to the state for the purpose of constructing a baseball stadium as defined in section 104 of this act shall be deposited in the sports bond retirement account under section 104 of this act.

NEW SECTION. Sec. 102. A new section is added to chapter 67.70 RCW to read as follows:

The lottery commission shall conduct at least two but not more than four games with sports themes per year. Revenues from these games shall be deposited into the sports bond retirement account under section 104 of this act.

Sec. 103. RCW 67.70.240 and 1987 c 513 s 7 are each amended to read as follows:

The moneys in the state lottery account shall be used only: (1) For the payment of prizes to the holders of winning lottery tickets or shares; (2) for purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260; (3) for purposes of making deposits into the state's general fund; (4) for purposes of making deposits into the housing trust fund under the provisions of section 7 of this 1987 act; (5) for purposes of making deposits into the sports bond retirement account under section 104 of this act of revenues generated from games with sports themes under section 104 of this act; (6) for the purchase and promotion of lottery games and game-related services; and ((~~(6)~~)) (7) for the payment of agent compensation.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

NEW SECTION. Sec. 104. A new section is added to chapter 43.79 RCW to read as follows:

(1) The sports bond retirement account is created in the custody of the state treasurer. The account shall be used exclusively for the payment of the principal and interest payments on up to twenty million dollars in bonds issued by a county with a population of one million or more to construct a baseball stadium. Interest and earnings on investments of moneys in the account shall be deposited into the account.

(2) The sports bond retirement account shall consist of all moneys deposited into the account under sections 101 and 102 of this act and interest and earnings on investments of moneys in the account under subsection (1) of this section.

(3) A county with a population of one million or more that has issued bonds to construct a baseball stadium shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on twenty million dollars of bonds. On the date on which any such interest or principal and interest payment is due, the state treasurer shall withdraw and transmit to the county from the sports bond retirement account, an amount equal to the amount certified by the county to be due on the payment date. To the extend moneys in the account exceed the amount necessary, they shall be used for early retirement of the state's share of the bonds.

(4) The sports bond retirement account is abolished on the date of the retirement of the bonds issued by a county with a population of one million or more to construct a baseball stadium. Moneys remaining in the account shall be transferred to the state general fund on that date.

(5) As used in this section, "baseball stadium" means a baseball stadium with natural turf and a retractable roof or canopy, together with associated parking facilities, constructed in the largest city in a county with a population of one million or more.

Sec. 105. RCW 43.79A.040 and 1995 c 394 s 2 and 1995 c 365 s 1 are each reenacted and amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The agricultural local fund, the American Indian scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, ((~~and~~)) the self-insurance revolving fund, and the sports bond retirement account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, and the local rail service assistance account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 106. RCW 36.100.090 and 1995 1st sp.s. s 6 are each repealed.

NEW SECTION. Sec. 107. The rights to name the baseball stadium shall be sold for at least thirty million dollars. Moneys collected from the sale shall be remitted to the public facilities district in a county with a population of one million or more for the purpose of constructing a baseball stadium.

As used in this section, "baseball stadium" means "baseball stadium" as defined in section 104 of this act.

NEW SECTION. Sec. 108. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 shall not apply to sales of labor and materials on the construction of buildings, site preparation, and the acquisition of related machinery and equipment of a baseball stadium, as defined in section 104 of this act.

NEW SECTION. Sec. 109. A new section is added to chapter 82.12 RCW to read as follows:

The provisions of this chapter shall not apply with respect to the use of articles and services exempt from tax under section 108 of this act.

PART II

LOCAL FUNDING

Sec. 201. RCW 82.14.360 and 1995 1st sp.s. c 14 s 7 are each amended to read as follows:

(1) The legislative authority of a of a city in a county with a population of one million or more ((~~operating under a county charter~~)) may impose a special stadium sales and use tax ((~~by resolution adopted on or before December 31, 1995, for collection following its approval by a majority of the voters in the county at a general or special election~~)) upon the retail sale or use within the city by restaurants, taverns, and bars of food and beverages that are taxable by the state under chapters 82.08 and 82.12 RCW.

(2) The rate of the tax shall equal ((~~one-tenth of one~~)) 0.3 percent of the selling price in the case of a sales tax, or value of the article used in the case of a use tax. The tax imposed under this section shall not be credited against any other tax imposed upon the same taxable event.

(3) The revenue from the tax imposed under this section shall be transferred to the county and used for the purpose of principal and interest payments on bonds issued by ((~~a public facilities district, created within~~)) the county ((~~under chapter 36.100 RCW,~~)) to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium ((with a retractable roof or canopy and natural turf. If the revenue from the tax imposed under this section exceeds the amount needed for such principal and interest payments in any year, the excess shall be used solely)). Bonds shall be issued to acquire, construct, own, and equip the baseball stadium in an amount determined to be necessary by the public facilities district but not greater than one hundred fifteen million dollars. Revenues from the tax imposed under this section in excess of the amount needed for principal and interest payments in any year may be used for ((~~either or both: (a)~~ )) early retirement of the bonds issued for the baseball stadium; or ((~~(b) retirement of bonds issued for expanding, remodelling, repairing, or reequipping of a multipurpose stadium that has a seating capacity over forty-five thousand~~)) placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium.

(4) The tax authorized under this section may be collected only after the county executive has certified to the department of revenue that a professional major league baseball team has made a binding and legally enforceable contractual commitment to:

(a) Play at least ninety percent of its home games in the stadium for a period of time not shorter than the term of the bonds issued to finance the initial construction of the stadium;

(b) Contribute ((~~principal of~~)) at least forty-five million dollars toward the ((~~bonded~~)) reasonably necessary preconstruction costs including, but not limited to architectural, engineering, environmental, and legal services, and the cost of construction of the stadium, or to any associated public purpose separate from bond-financed property, including without limitation land acquisition, parking facilities, equipment, infrastructure or other similar costs associated with the project, which contribution shall be made during a term not to exceed the term of the bonds issued to finance the initial construction of the stadium. If all or part of the contribution is made after the date of issuance of the bonds, the team shall contribute an additional amount equal to the accruing interest on the deferred portion of the contribution, calculated at the interest rate on the bonds maturing in the year in which the deferred contribution is made. No part of the contribution may be made without the consent of the county until a public facilities district is created under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. To the extent possible, contributions shall be structured in a manner that would allow for the issuance of bonds to construct the stadium that are exempt from federal income taxes;

((~~(c)~~)) (d) Share a portion of the profits generated by the baseball team from the operation of the professional franchise for a period of time equal to the term of the bonds issued to finance the initial construction of the stadium, after offsetting any losses incurred by the baseball team after the effective date of chapter 14, Laws of 1995 1st sp. sess. Such profits and the portion to be shared shall be defined by agreement between the public facilities district and the baseball team. The shared profits shall be used to retire the bonds issued to finance the initial construction of the stadium. If the bonds are retired before the expiration of their term, the shared profits shall be paid to the public facilities district.

(5) No tax may be collected under this section before January 1, 1996. Before imposing the taxes under this section or issuing bonds for a baseball stadium, the county shall create a public facilities district under chapter 36.100 RCW to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium, and the county shall acquire and contribute to the district such real property as the district determines to be necessary as a site for the baseball stadium. The proceeds of any bonds issued for the baseball stadium or any other facility that the district will own shall be provided to the district.

(6) As used in this section, "baseball stadium" means "baseball stadium" as defined in section 104 of this act.

(7) The tax imposed under this section shall expire when the bonds issued for the construction of the ((~~new public facilities~~)) baseball stadium are retired, but not later than twenty years after the tax is first collected.

Sec. 202. RCW 35.21.280 and 1995 1st sp.s. c 14 s 8 are each amended to read as follows:

Every city and town may levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid by the person who pays an admission charge to any place: PROVIDED, No city or town shall impose such tax on persons paying an admission to any activity of any elementary or secondary school. This includes a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same privileges or accommodations. A city that is located in a county with a population of one million or more may not levy a tax on events in stadia constructed on or after January 1, 1995, that are owned by ((~~county government or~~)) a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand. The city or town may require anyone who receives payment for an admission charge to collect and remit the tax to the city or town.

The term "admission charge" includes:

(1) A charge made for season tickets or subscriptions;

(2) A cover charge, or a charge made for use of seats and tables reserved or otherwise, and other similar accommodations;

(3) A charge made for food and refreshment in any place where free entertainment, recreation or amusement is provided;

(4) A charge made for rental or use of equipment or facilities for purposes of recreation or amusement; if the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge;

(5) Automobile parking charges if the amount of the charge is determined according to the number of passengers in the automobile.

Sec. 203. RCW 36.38.010 and 1995 1st sp.s. c 14 s 9 are each amended to read as follows:

(1) Any county may by ordinance enacted by its county legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations; and require that one who receives any admission charge to any place shall collect and remit the tax to the county treasurer of the county: PROVIDED, No county shall impose such tax on persons paying an admission to any activity of any elementary or secondary school.

(2) As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge. It shall also include any automobile parking charge where the amount of such charge is determined according to the number of passengers in any automobile.

(3) The tax herein authorized shall not be exclusive and shall not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind: PROVIDED, That whenever the same or similar kind of tax is imposed by any such city or town, no such tax shall be levied within the corporate limits of such city or town by the county, except that the legislative authority of a county with a population of one million or more may exclusively levy a tax on events in stadiums constructed on or after January 1, 1995, that are owned by ((~~county government or~~)) a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand at the rate of not more than one cent on ((~~twenty~~)) ten cents or fraction thereof. The revenues shall be used as provided in RCW 82.14.360(3).

(4) By contract, the county shall obligate itself to provide the revenue from the tax authorized by this section on events in stadia owned, managed, or operated by a public facilities district, having seating capacities over forty thousand, and constructed on or after January 1, 1995, to the public facilities district.

NEW SECTION. Sec. 204. A professional major league baseball team may use the proceeds from the sale of personal seat licenses in the baseball stadium, as defined in section 104 of this act, to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate the baseball stadium.

NEW SECTION. Sec. 205. Moneys shall only be spent for the baseball stadium, as defined in section 104 of this act, by the public facilities district on a matching basis with public and private funds, and private funds shall equal at least one hundred million dollars."

SB 6085 - S AMD - 003

BySenator Stranigan

Withdrawn 10/13/95

On page 1, line 1, after "facilities;" strike the remainder of the title and insert "amending RCW 67.70.240, 82.14.360, 35.21.280, 36.38.010, 36.100.010, 39.10.120, and 82.29A.130; reenacting and amending RCW 43.79A.040; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.14 RCW; adding new sections to chapter 43.79 RCW; adding a new section to chapter 67.70 RCW; adding a new section to chapter 36.100 RCW; creating new sections; repealing RCW 36.100.090 and 39.10.902; making an appropriation; and declaring an emergency."