BILL REQ. #:  H-4087.3 

Read first time 01/20/2006.   Referred to Committee on Economic Development, Agriculture & Trade.

     AN ACT Relating to imposing a fee on athletes of nonresident teams to replace state park user fees and fund football, baseball, and basketball facilities; amending RCW 82.14.0485, 82.14.0494, and 79A.05.070; adding a new section to chapter 82.32 RCW; adding a new section to chapter 35.21 RCW; adding a new chapter to Title 82 RCW; and providing an effective date.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Professional athletic team" means any professional baseball, basketball, or football team that is a member of a national league or association of significance.
     (2) "Nonresident professional athletic team" means a professional athletic team that is domiciled outside of Washington.
     (3) "Member of a nonresident professional athletic team" means an employee who is an active player, a player on the disabled list, or any other player required to travel and who does travel with and performs services on behalf of a nonresident professional athletic team on a regular basis. "Member of a nonresident professional athletic team" does not include persons other than players, such as a coach, manager, or trainer.
     (4)(a) "Duty day" means any day during the year in which a professional athletic team competes or is scheduled to compete.
     (b) For each member of a nonresident professional athletic team, "duty day" excludes:
     (i) Any day for which the member is not compensated and is not rendering services for the team in any manner, including days when the member has been suspended without pay and prohibited from performing any services for the team; and
     (ii) Any day for which the member is on the disabled list.

NEW SECTION.  Sec. 2   (1) For the privilege of performing before paying audiences in publicly financed facilities, a fee is imposed on each member of a nonresident professional athletic team for each duty day that occurs in Washington. The fee shall be the following:
     (a) For a member of a baseball team, seven hundred fifty dollars per duty day;
     (b) For a member of a football team, three thousand five hundred dollars per duty day; and
     (c) For a member of a basketball team, three thousand five hundred dollars per duty day.
     (2) The operator of the facility in which a nonresident professional athletic team competes shall collect on the duty day the fee from each member on the team. The operator shall file a return with the department on a monthly basis. The return shall include the following:
     (a) The number of duty days during the return period for each player who is a member of a nonresident professional athletic team; and
     (b) Remittance of the player's fee or fees for that month.
     (3) The revenue from the fees shall be deposited as follows:
     (a) Revenues from fees collected from members of baseball teams shall be deposited into the professional baseball facilities account under section 3(1) of this act.
     (b) Revenues from fees collected from members of football teams shall be deposited into the professional football facilities account under section 3(2) of this act.
     (c) Revenues from fees collected from members of basketball teams shall be deposited into the professional basketball facilities account under section 3(3) of this act.
     (4) The revenue from the fees shall be expended solely for the purpose of financing or maintaining facilities in which professional athletic teams domiciled in Washington regularly play home games.

NEW SECTION.  Sec. 3   (1) The professional baseball facilities account is created in the custody of the state treasurer. All receipts from fees collected under section 2 of this act from members of professional baseball teams must be deposited into the account. Expenditures from the account shall be used solely for the purpose of financing or maintaining the facility in which a professional athletic team that is a baseball team domiciled in Washington regularly plays its home games. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. Until such time as the bonds issued for the construction of a baseball stadium defined under RCW 82.14.0485 are retired, money from the account shall be distributed to the county for the purpose of paying the principal and interest payments on the bonds issued by the county. After such time as the bonds are retired, money from the account shall be distributed to the public facilities district within the county for the purposes of maintaining or financing the stadium.
     (2) The professional football facilities account is created in the custody of the state treasurer. All receipts from fees collected under section 2 of this act from members of professional football teams must be deposited into the account. Expenditures from the account shall be used solely for the purpose of financing or maintaining the facility in which a professional athletic team that is a football team domiciled in Washington regularly plays its home games. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. Until such time as the bonds issued under RCW 43.99N.020 for a stadium and exhibition center defined under RCW 36.102.010 are retired, money from the account shall be deposited into the stadium and exhibition center account in RCW 43.99N.060. After such time as the bonds are retired, money from the account shall be distributed to the public stadium authority created in chapter 36.102 RCW for the purposes of maintaining or financing the stadium and exhibition center.
     (3) The professional basketball facilities account is created in the custody of the state treasurer. All receipts from fees collected under section 2 of this act from members of professional basketball teams must be deposited into the account. Expenditures from the account shall be used solely for the purpose of financing or maintaining the facility in which a professional athletic team that is a basketball team domiciled in Washington regularly plays its home games. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. Money from the account shall be distributed to the city or other entity that owns the facility.

NEW SECTION.  Sec. 4   A member of a nonresident professional athletic team that is domiciled in a state that does not impose income tax on nonresident athletes is exempt from the fee imposed under this chapter.

NEW SECTION.  Sec. 5   All of chapter 82.32 RCW, except RCW 82.32.270, applies to the fee imposed by this chapter, in addition to any other provisions of law for the payment and enforcement of the fee imposed by this chapter. The department may adopt rules, in accordance with chapter 34.05 RCW, as necessary to provide for the effective administration of this chapter.

Sec. 6   RCW 82.14.0485 and 1995 3rd sp.s. c 1 s 101 are each amended to read as follows:
     (1) The legislative authority of a county with a population of one million or more may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall not exceed 0.017 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.
     (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.
     (3) Moneys collected under this section shall only be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium.
     (4)(a) No tax may be collected under this section before January 1, 1996, and no tax may be collected under this section unless the taxes under RCW 82.14.360 are being collected. The tax imposed in this section shall expire when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax is first collected.
     (b) Within one hundred twenty days of the effective date of this act, the legislative authority of the county shall reduce as of January 1, 2007, the rate of tax imposed under subsection (1) of this section such that the resulting amount of tax to be collected under this section for calendar year 2007, when combined with the amount of revenue to be generated by the fee imposed in section 2(1)(a) of this act for the year, equals the amount of tax that would have otherwise been collected under this section for the year but for passage of this act. The county legislative authority shall utilize the most recent forecast of the state economic and revenue forecast council in determining the rate.
     (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. 7   RCW 82.14.0494 and 1997 c 220 s 204 are each amended to read as follows:
     (1) The legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.050 may impose a sales and use tax in accordance with this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall be 0.016 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.
     (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.
     (3) Before the issuance of bonds in RCW 43.99N.020, all revenues collected on behalf of the county under this section shall be transferred to the public stadium authority. After bonds are issued under RCW 43.99N.020, all revenues collected on behalf of the county under this section shall be deposited in the stadium and exhibition center account under RCW 43.99N.060.
     (4) Within one hundred twenty days of the effective date of this act, the legislative authority of the county shall reduce as of January 1, 2007, the rate of tax imposed under subsection (1) of this section such that the resulting amount of tax to be collected under this section for calendar year 2007, when combined with the amount of revenue to be generated by the fee imposed in section 2(1)(b) of this act for the year, equals the amount of tax that would have otherwise been collected under this section for the year but for passage of this act. The county legislative authority shall utilize the most recent forecast of the state economic and revenue forecast council in determining the rate.
     (5) The definitions in RCW 36.102.010 apply to this section.
     (((5))) (6) This section expires on the earliest of the following dates:
     (a) December 31, 1999, if the conditions for issuance of bonds under RCW 43.99N.020 have not been met before that date;
     (b) The date on which all bonds issued under RCW 43.99N.020 have been retired; or
     (c) Twenty-three years after the date the tax under this section is first imposed.

NEW SECTION.  Sec. 8   A new section is added to chapter 82.32 RCW to read as follows:
     The day use fee reduction account is hereby created in the state treasury. Of the money received from taxes imposed under chapters 82.08 and 82.12 RCW, an amount equal to the amount forecast to be generated by the imposition of all fees under section 2(1) of this act in calendar year 2007 shall be deposited in the account on an annual basis for the support of the state parks and recreation commission. Money in the account may only be spent after appropriation. Money in the account shall only be used to offset the loss in revenue due to section 10 of this act.

NEW SECTION.  Sec. 9   A new section is added to chapter 35.21 RCW to read as follows:
     (1) The city or other entity that owns the facility in which a professional athletic team that is a basketball team competes regularly in Washington shall enter into an agreement with the state treasurer to provide payment to the state equal to the amount provided to the city from the fee imposed under section 2(1)(c) of this act.
     (2) The definitions in section 1 of this act apply to this section.

Sec. 10   RCW 79A.05.070 and 2003 c 186 s 1 are each amended to read as follows:
     The commission may:
     (1) Make rules and regulations for the proper administration of its duties;
     (2) Accept any grants of funds made with or without a matching requirement by the United States, or any agency thereof, for purposes in keeping with the purposes of this chapter; accept gifts, bequests, devises and endowments for purposes in keeping with such purposes; enter into cooperative agreements with and provide for private nonprofit groups to use state park property and facilities to raise money to contribute gifts, grants, and support to the commission for the purposes of this chapter. The commission may assist the nonprofit group in a cooperative effort by providing necessary agency personnel and services, if available. However, none of the moneys raised may inure to the benefit of the nonprofit group, except in furtherance of its purposes to benefit the commission as provided in this chapter. The agency and the private nonprofit group shall agree on the nature of any project to be supported by such gift or grant prior to the use of any agency property or facilities for raising money. Any such gifts may be in the form of recreational facilities developed or built in part or in whole for public use on agency property, provided that the facility is consistent with the purposes of the agency;
     (3) Require certification by the commission of all parks and recreation workers employed in state aided or state controlled programs;
     (4) Act jointly, when advisable, with the United States, any other state agencies, institutions, departments, boards, or commissions in order to carry out the objectives and responsibilities of this chapter;
     (5) Grant franchises and easements for any legitimate purpose on parks or parkways, for such terms and subject to such conditions and considerations as the commission shall specify;
     (6) Charge such fees for services, utilities, and use of facilities as the commission shall deem proper. The commission may not charge fees for general park access or parking;
     (7) Enter into agreements whereby individuals or companies may rent undeveloped parks or parkway land for grazing, agricultural, or mineral development purposes upon such terms and conditions as the commission shall deem proper, for a term not to exceed forty years;
     (8) Determine the qualifications of and employ a director of parks and recreation who shall receive a salary as fixed by the governor in accordance with the provisions of RCW 43.03.040 and determine the qualifications and salary of and employ such other persons as may be needed to carry out the provisions hereof; and
     (9) Without being limited to the powers hereinbefore enumerated, the commission shall have such other powers as in the judgment of a majority of its members are deemed necessary to effectuate the purposes of this chapter: PROVIDED, That the commission shall not have power to supervise directly any local park or recreation district, and no funds shall be made available for such purpose.

NEW SECTION.  Sec. 11   Sections 1 through 5 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 12   This act takes effect July 1, 2006.