SENATE BILL REPORT

SB 5813

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 of February 28, 2013

Title: An act relating to supporting youth programs through agricultural fairs.

Brief Description: Supporting youth programs through agricultural fairs.

Sponsors: Senators Hewitt, Holmquist Newbry, Honeyford, Becker, Rivers, Schoesler, Hatfield, Ericksen, Hobbs, Sheldon, Hargrove, Eide, Dammeier, King, Brown and Shin.

Brief History:

Committee Activity: Commerce & Labor: 2/22/13 [DP-WM, w/oRec].

Ways & Means: 2/27/13.

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report: Do pass and be referred to Committee on Ways & Means.

Signed by Senators Holmquist Newbry, Chair; Braun, Vice Chair; Conway, Ranking Member; Hewitt and King.

Minority Report: That it be referred without recommendation.

Signed by Senators Hasegawa and Keiser.

Staff: Mac Nicholson (786-7445)

SENATE COMMITTEE ON WAYS & MEANS

Staff: Dianne Criswell (786-7433)

Background: Agricultural fairs may receive funding from the state fair fund, which is administered by the Department of Agriculture. State law requires an annual $2 million transfer into the fair fund from the general fund. In fiscal year 2012 and 2013, the required transfer was $3.5 million.

In fiscal year 2012, Washington Lottery beneficiaries were the following:

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill: During calendar year 2013, $2,500,000 must be distributed from the state lottery account to the state fair fund.

In subsequent years, the distribution amount must increase 2 percent over the previous year. Distributions will stop June 30, 2023.

After June 30, 2023, $2 million per fiscal year must be transferred into the fair fund from the general fund.

EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (Proposed First Substitute): Changes amount distributed in calendar year 2013 from $2,000,500 per year to $2,500,000.

Appropriation:

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony (Commerce & Labor): PRO: This bill does many things, it is an education bill, it will help raise charitable donations, help youth raise money for college, produce entertainment, provide workforce development, it is an economic engine, and will enhance revenue for state and local governments.

Persons Testifying (Commerce & Labor): PRO: Ron Newbry, Central WA Fair Assn.

Staff Summary of Public Testimony (Ways & Means): PRO: Fairs are a economic engine for Washington, creating thousands of part-time jobs. A recent study concluded that fairs generate money and tax revenue for the state. Fairs increase quality of life in communities. Fairs support and involve many service clubs. Since 1998, the state general fund (GF-S) has been the main support for these fairs. This proposal would relieve the pressure on the GF-S. We do not own fair grounds, we do not charge at the gate, nor do we charge for stalls. The GF-S allocation is sporatic. This proposal would provide ten years for continuity in support. This bill promotes agriculture and supports Washington's largest classroom.

Persons Testifying (Ways & Means): PRO: Richard Hartzell, WA State Fairs; Greg Stewart, Central WA State Fair; John Morrison, WA State Fair Assn, Clark County Fair; Paul Nimmo, WA State Fairs Assn.