SENATE BILL REPORT

SB 6126

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Ways & Means, April 6, 2009

Majority Report: Do pass.

Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Tom, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Fairley, Hobbs, Honeyford, Keiser, Kline, Kohl-Welles, McDermott, Murray, Oemig, Parlette, Pflug, Pridemore, Regala, Rockefeller and Schoesler.

Background: The Department of Licensing (Department) currently regulates boxing, martial arts, and wrestling events. The Department licenses participants, including fighters, promoters, managers, and referees. For events to occur legally in Washington, the participants must be licensed. Additionally, a 5 percent tax must also be paid on gross receipts from the event. Funds from the fees and tax go into the state General Fund.

The Department or a designee must attend all events and can take disciplinary action if an event fails to have licensed participants or pay its fee. This licensing program is not required to be self-supporting.

Summary of Bill: The tax is changed into an event fee, which will be collected by the Department and deposited into the Business and Professions Account. The fees currently assessed should also be deposited into the Business and Professions Account. The Department has the authority to set these fees by rule and the fees should be set in amounts that fully cover the cost of regulating the industry.

Fiscal Note: Requested on March 23, 2009.

[OFM requested ten-year cost projection pursuant to I-960.]