S-4591.1  _______________________________________________

 

                    SUBSTITUTE SENATE BILL 6562

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Senate Committee on Commerce & Labor (originally sponsored by Senators Schow, Heavey, Rasmussen and Anderson)

 

Read first time 02/05/98.

Providing relief for the equine industry.


    AN ACT Relating to relief for the equine industry by amending the parimutuel tax on horse racing to provide additional support for licensed racing associations, the state fair account, the state trade fair account, and the Washington horse racing commission; amending RCW 15.04.090, 67.16.100, 67.16.105, and 67.16.170; adding a new section to chapter 15.76 RCW; adding a new section to chapter 43.31 RCW; adding new sections to chapter 43.131 RCW; making appropriations; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 15.04.090 and 1961 c 11 s 15.04.090 are each amended to read as follows:

    The director of agriculture may, at his discretion, for a period of not to exceed ten years, lease state lands which are now or may hereafter be, under his direction and control, the retention of which he deems unnecessary for present state purposes or needs, to any nonprofit group or organization having educational, agricultural or youth development purposes.  Such leases shall be upon such terms as the director deems beneficial to the state.  All rental funds received by the director under the provisions of this section shall be deposited in the (("fair fund" provided in RCW 67.16.100)) state fair account created under section 2 of this act.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 15.76 RCW to read as follows:

    The state fair account is created in the custody of the state treasury.  All moneys received by the department of agriculture for the purposes of this fund shall be deposited into the fund.  Expenditures from the fund may be used only for assisting fairs in the manner provided in chapter 15.76 RCW.  Only the director of agriculture or the director's designee may authorize expenditures from the fund.  The fund is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

 

    NEW SECTION.  Sec. 3.  A new section is added to chapter 43.31 RCW to read as follows:

    The state trade fair account is created in the custody of the state treasury.  All moneys received by the department of community, trade, and economic development for the purposes of this fund shall be deposited into the fund.  Expenditures from the fund may be used only for the purpose of assisting state trade fairs.  Only the director of community, trade, and economic development or the director's designee may authorize expenditures from the fund.  The fund is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

 

    Sec. 4.  RCW 67.16.100 and 1995 c 399 s 166 are each amended to read as follows:

    (1) All sums paid to the commission under this chapter, including those sums collected for license fees and excluding those sums collected under RCW 67.16.102((,)) and 67.16.105(((3), and 67.16.105(4), shall be disposed of by the commission as follows:

    (a) Fifty percent thereof)) shall be retained by the commission for the payment of the salaries of its members, secretary, clerical, office, and other help and all expenses incurred in carrying out the provisions of this chapter.  ((No salary, wages, expenses, or compensation of any kind shall be paid by the state in connection with the work of the commission.

    (b) One percent shall, on the next business day following the receipt thereof, be paid to the state treasurer to be deposited in the general fund.

    (c) Three percent shall, on the next business day following the receipt thereof, be paid to the state treasurer, who is hereby made ex officio treasurer of a fund to be known as the "state trade fair fund" which shall be maintained as a separate and independent fund, and made available to the director of community, trade, and economic development for the sole purpose of assisting state trade fairs.

    (d) Forty-six percent shall be paid to the state treasurer, who is hereby made ex officio treasurer of a fund to be known as the "fair fund," which shall be maintained as a separate and independent fund outside of the state treasury, and made available to the director of agriculture for the sole purpose of assisting fairs in the manner provided in Title 15 RCW.))

    (2)(a) All sums paid to the commission under RCW 67.16.105 (1) and (2) shall be retained by the commission for the payment of the salaries of its members, secretary, clerical, office, and other help and all expenses incurred in carrying out the provisions of this chapter.

    (b) Beginning July 1, 1998, all sums paid to the commission under RCW 67.16.105 (1) and (2) shall be paid to the state treasurer for deposit into the state fair account.  Funds deposited under this section shall be expended as authorized under chapter 15.76 RCW.

    (3) Any moneys collected or paid to the commission under the terms of this chapter and not expended at the close of the fiscal biennium shall be paid to the state treasurer and be placed in the general fund.  The commission may, with the approval of the office of financial management, retain any sum required for working capital.

 

    Sec. 5.  RCW 67.16.105 and 1997 c 87 s 3 are each amended to read as follows:

    (1) Licensees of race meets that are nonprofit in nature((,)) and are of ten days or less((, and have an average daily handle of one hundred twenty thousand dollars or less)) shall ((withhold and pay to the commission daily for each authorized day of racing one-half percent of)) be exempt from payment of a tax to the commission and the department based upon the ((daily)) gross receipts ((from all)) of its parimutuel machines at each race meet.

    (2) Licensees that do not fall under subsection (1) of this section shall withhold and pay to the commission daily for each authorized day of parimutuel wagering the following applicable percentage of all daily gross receipts from its in-state parimutuel machines:

    (a) If the ((daily)) gross receipts of all its in-state parimutuel machines are more than ((two hundred fifty thousand)) fifty million dollars in the previous calendar year, the licensee shall withhold and pay to the commission daily ((two and one-half)) 1.15 percent of the daily gross receipts; and

    (b) If the ((daily)) gross receipts of all its in-state parimutuel machines are ((two hundred fifty thousand)) fifty million dollars or less in the previous calendar year, the licensee shall withhold and pay to the commission daily ((one)) 0.46 percent of the daily gross receipts.

    (3) In addition to those amounts in subsection((s (1) and)) (2) of this section, a licensee shall forward one-tenth of one percent of the daily gross receipts of all its in-state parimutuel machines to the commission for payment to those nonprofit race meets as set forth in RCW 67.16.130 and subsection (1) of this section, but said percentage shall not be charged against the licensee.  Payments to nonprofit race meets under this subsection shall be distributed on a pro rata per-race-day basis and used only for purses at race tracks that have been operating under RCW 67.16.130 and subsection (1) of this section for the five consecutive years immediately preceding the year of payment.

 

    Sec. 6.  RCW 67.16.170 and 1991 c 270 s 8 are each amended to read as follows:

    (1) Licensees of race meets that are nonprofit in nature((,)) and are of ten days or less((, and have an average daily handle of one hundred twenty thousand dollars or less)) may retain daily for each authorized day of racing ((fourteen and one-half)) fifteen percent of daily gross receipts of all parimutuel machines at each race meet.

    (2) Licensees of race meets that do not fall under subsection (1) of this section may retain daily for each authorized day of ((racing)) parimutuel wagering the following percentages from the daily gross receipts of all its in-state parimutuel machines ((at each race meet)):

    (a) If the daily gross receipts of all its in-state parimutuel machines are more than ((two hundred fifty thousand)) fifty million dollars in the previous calendar year, the licensee may retain daily ((twelve and one-half)) 13.85 percent of the daily gross receipts; and

    (b) If the daily gross receipts of all its in-state parimutuel machines are ((two hundred fifty thousand)) fifty million dollars or less in the previous calendar year, the licensee may retain daily ((fourteen)) 14.54 percent of the daily gross receipts.

 

    NEW SECTION.  Sec. 7.  A new section is added to chapter 43.131 RCW to read as follows:

    The reduction in parimutuel taxes and redistributions under sections 4 through 6 of this act shall be terminated June 30, 2001, as provided in section 8 of this act.

 

    NEW SECTION.  Sec. 8.  A new section is added to chapter 43.131 RCW to read as follows:

    The following acts or parts of acts are each repealed, effective June 30, 2002:

    (1) 1998 c ... s 4 (section 4 of this act);

    (2) 1998 c ... s 5 (section 5 of this act); and

    (3) 1998 c ... s 6 (section 6 of this act).

 

    NEW SECTION.  Sec. 9.  The sum of one million fifty-seven thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the state fair account solely for the purposes of chapter 15.76 RCW and section 2 of this act.

 

    NEW SECTION.  Sec. 10.  The sum of one hundred seventy thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the state trade fair account solely for the purposes of RCW 43.31.830 and section 3 of this act.

 

    NEW SECTION.  Sec. 11.  The sum of one million nine hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 1999, from the general fund to the Washington horse racing commission solely for the purposes of chapter 67.16 RCW and section 4 of this act.

 

    NEW SECTION.  Sec. 12.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

 

    NEW SECTION.  Sec. 13.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

 


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